Romania’s Government announced the European Commission last Thursday that it planned to grant an individual state aid of up to EUR 14 million to the National Uranium Company (CNU), fully owned by the state, in an attempt to save it.

The state aid will be awarded via a six-month loan, reports local Profit.ro.

The Government explained that it was urgent and necessary to give the loan. It argued that the Europe’s Eastern border is becoming increasingly unstable, and it’s recommended to have uranium stocks for a period of up to five years. The money would provide the National Uranium Company the necessary liquidity to cover its minimum expenses for six months.

In December 2015, the nuclear power producer Nuclearelectrica terminated the contract with CNU for the supply of powdered uranium dioxide for the nuclear power plant in Cernavoda. Instead Nucleareletrica closed a deal with the Canadian company Cameco to import uranium.

editor@romania-insider.com